The balance received by the credit bureaus is the amount that reflects on your statement, right after the closing date. It is because the closing date is the last date of one’s credit card billing cycle, which doesn’t affect the end of the month.

There are Benefits of Making Early Credit Card Payments

Making payment before the closing of the statement will be beneficial towards your credit score, and usually increases one’s credit score. It all depends on the amount of debt you have on your name, and how much more you pay off than you should for that month.

Even though there are many benefits to making payment earlier, one should also be wary of paying your credit card bills too early, as this may result in potential late fees, should you miss the following payment.

Further benefits include saving interest on the following payments required to be made by you. Given that your credit card issuer makes use of either the daily balance method, you could significantly reduce your balance much earlier in the billing cycle, which if successful, you would be required to pay much less, as the interest rate will be lower than normal.

Should you way an extended period to make payment in the billing cycle, your balance will remain much higher, for a longer period within the billing cycle. Your average balance now would thus be much higher, and you will end up paying more interest.

How to schedule future credit card payments for your benefit

In the event that you need to make a credit card payment earlier than normal and you don’t want it to result in crediting your account in another billing cycle, you could schedule an automatic payment by using online banking. This is also a great option for making multiple payments, should you not be able to physically pay or have access to the internet on the dates that payments need to be made.